Effect of Transactions on Cash FlowsState the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.Sold 7,000 shares of $10 par common stock for $17 per share.Sold equipment with a book value of $56,600 for $81,500.Purchased land for $386,000 cash.Purchased a building by paying $70,000 cash and issuing a $100,000 mortgage note payable.Sold a new issue of $240,000 of bonds at 98.Purchased 6,400 shares of $40 par common stock as treasury stock at $75 per share.Paid dividends of $1.50 per share. There were 24,000 shares issued and 4,000 shares of treasury stock. EffectAmounta.Cash payment $fill in the blank 2b.Cash receipt $fill in the blank 4c.Cash receipt $fill in the blank 6d.Cash payment $fill in the blank 8e.Cash payment $fill in the blank 10f.Cash receipt $fill in the blank 12g.Cash payment $fill in the blank 14h.Cash payment $fill in the blank 16

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities. Operating activities include cash inflows and outflows from business operations. Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments. Financing activities includes cash inflows and outflows from issuance of common stock and debt, payment of debt and dividends.

Answered: Effect of Transactions on Cash Flows…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 2E: Effect of transactions on cash flows State the effect (cash receipt or cash payment and amount) of...

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Effect of Transactions on Cash Flows

State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:

Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.
Sold 7,000 shares of $10 par common stock for $17 per share.
Sold equipment with a book value of $56,600 for $81,500.
Purchased land for $386,000 cash.
Purchased a building by paying $70,000 cash and issuing a $100,000 mortgage note payable.
Sold a new issue of $240,000 of bonds at 98.
Purchased 6,400 shares of $40 par common stock as treasury stock at $75 per share.
Paid dividends of $1.50 per share. There were 24,000 shares issued and 4,000 shares of treasury stock.

	Effect	Amount
a.	Cash payment	$fill in the blank 2
b.	Cash receipt	$fill in the blank 4
c.	Cash receipt	$fill in the blank 6
d.	Cash payment	$fill in the blank 8
e.	Cash payment	$fill in the blank 10
f.	Cash receipt	$fill in the blank 12
g.	Cash payment	$fill in the blank 14
h.	Cash payment	$fill in the blank 16

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